Does Claiming My Parent as Dependent Affect Her SSI or SS Benefits?

by Tom Streissguth

    If you're lending a financial hand to your parents, your well-intentioned efforts may have consequences for their Social Security benefits. Although Social Security disability and retirement benefits are not "means tested," Supplemental Security Income does take into account support received from outside sources, including children and other relatives. This will probably come into play if you're providing enough support for your parents to qualify as dependents.

    You can claim a parent as a dependent if you provided at least half of his support during the year. This support may come in the form of food, housing, medical expenses, clothing and other essentials. The parent's income may not exceed $3,900 as of 2013; this amount does not include any Social Security or Supplemental Security Income benefits he is receiving. To claim a parent or anyone else as a dependent, you may not be eligible as a dependent on someone else's tax return.

    Social Security retirement benefits are based on work history and how much the beneficiary paid into the system. If your parent worked and paid in through payroll taxes and earned at least 40 work credits through payroll withholding or self-employment taxes, she's eligible for retirement benefits. Your claiming her as a dependent has no effect on the benefit amount. She's also free to work and receive other income while collecting retirement, although if that extra income exceeds $3,900, she can't be your dependent.

    To qualify for Social Security disability, your parent must prove that he is unable to work due to a medical condition that has lasted, or is expected to last, at least 12 months. The benefit is based on his work record and is paid monthly until he reaches full retirement age or until Social Security decides he is no longer disabled. Being claimed as a dependent has no effect on the benefit, but Social Security does limit any wage income she receives while on disability.

    The SSI program provides benefits to disabled people who don't qualify for regular disability benefits. The benefit amount is a flat $710 a month as of 2013, but SSI is a means-tested program. Your parent's resources are limited to $2,000 if she's single and $3,000 if she's married. In addition, Social Security also limits her monthly earned and unearned income. If she's receiving free lodging from a relative, for example, the agency will count the market value of that housing as income and offset her benefit accordingly. If you are claiming her as a dependent and thus providing at least half of her support, she may exceed the income guidelines for SSI.

    Photo Credits

    • Jupiterimages/Comstock/Getty Images

    About the Author

    Tom Streissguth has worked for over 15 years in the legal field as a writer and legal assistant, and has authored numerous articles on Social Security disability law. He has many nonfiction and reference titles in print, including works for The Gale Group and Lerner. He holds a Bachelor of Arts from Yale University.

    Zacks Investment Research

    is an A+ Rated BBB

    Accredited Business.